Inquiry launched into the ‘evasion of justice’ in the gig economy

27 September 2018

Frank Field MP today launches a major inquiry into the extent and
consequences of ‘employment law evasion’ in the gig economy.

The past two years have produced a series of employment tribunals,
settlements, and high-profile campaigns which have forced companies to admit
wrongdoing and review the pay and conditions offered to their workforce. In
particular, a growing number of companies has been required to recognise staff
as ‘workers’ who are entitled to basic forms of statutory protection –
including a guaranteed hourly minimum wage and holiday pay – rather than
‘independent contractors’ with no such protection.

However, it appears that some of these companies have not met
their legal requirements or honoured their commitments to recognise workers’
rights, but have rather continued to exploit those who have been wrongly
classed as independent contractors.

Frank and his colleague Andrew Forsey will therefore be gathering
evidence from individual workers, legal experts, enforcement specialists, trade
unions, and companies, with a view to publishing their findings alongside a
series of recommendations before Christmas. The Government’s Director of Labour
Market Enforcement, Sir David Metcalf, will also be invited to contribute to
the inquiry.

Frank comments: ‘The list of companies in the gig economy caught
exploiting their workers is growing. Those companies have had it made
abundantly clear to them that enough is enough and they need to start
respecting the law. A main aim of this inquiry is to find out whether they have
then done so, or whether instead they have chosen to stick two fingers up at
their workers and the legal system by coming up with another wheeze that gets
them off the hook.

‘The inquiry will, I hope, shine a bright light on the extent to
which justice is being evaded in the gig economy. Although I very much hope we
will also be able to recognise examples in which companies have managed
successfully to honour their obligations. Likewise, we will be looking to
suggest any immediate changes that are required, both to the law itself as well
as its enforcement, to ensure no company is able to evade justice.’

Dr Jason Moyer-Lee, General Secretary of the Independent Workers
Union of Great Britain (IWGB) adds: ‘For a couple of years now we have been
winning tribunal claims against courier and private hire companies. Yet
despite this somehow these workers are still not getting the rights they're
entitled to. The enforcement system is clearly broken and this inquiry
will shine a welcome spotlight on its abject failure.’

Among the examples that will be studied are the outcomes of the
settlements reached between (IWGB) members and eCourier, as well as the
employment tribunals between IWGB members and CitySprint and Uber.

The terms of reference for the inquiry are as follows:

1. How
frequently do companies in the gig economy reach a settlement with workers
seeking to bring a claim against them in an employment tribunal?
2. How
frequently do companies in the gig economy have claims brought against them in
an employment tribunal, and challenge them unsuccessfully?
3. What have
been the consequences of these settlements and employment tribunals for the pay
and conditions of individual workers, as well as the workforce as a whole who
are employed on similar terms at each company?
4. What
examples are there of companies applying the findings from settled claims, or
the verdict reached in an employment tribunal, in full to the whole of their
workforce who are employed on similar terms?
5. What
examples are there of companies failing to apply the findings from settled
claims, or the verdict reached in an employment tribunal, in full to the whole
of their workforce who are employed on similar terms?
6. What
particular moves, if any, are taken by companies in the gig economy to
counteract, delay, or evade this system of justice, and what steps are required
to prevent this from happening?
7. What
reforms, if any, are required to employment law, as well as its enforcement, to
ensure all workers in the gig economy receive their full legal entitlement to
basic forms of statutory protection?